cenvat credit

[sanjay gupta]

we are producing rectified sprit for making country liquor 

I have regisreed  with state Excise department 

we have purchased capital goods and paid central excise duty thiere on 

can we take credit of central Excise Duty against sale of Rectified sprit 

Please guide us.

 

 

AI Summary

Cenvat credit may be unavailable where capital goods produce products subject only to state excise, not central excise.
The operative principle recorded is that Cenvat credit on capital goods is claimable only when those goods are used in manufacture of products on which central excise is payable and which are cleared on payment of duty; where the final product (here, rectified spirit) is subject only to state excise and not central excise, respondents advised that Cenvat credit would not be available.